ROAS Calculator
Calculate return on ad spend, cost per click, and cost per conversion. Free ads calculator for Google Ads, Facebook Ads, and any paid campaign.
Total spent on ads
Revenue from ads
For CPC calculation
Sales or leads
450% return
per click
per conversion
revenue - ad spend
Good return on ad spend. Room to optimize and scale.
How to Calculate ROAS
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. It's the primary metric for evaluating paid campaign performance on platforms like Google Ads and Facebook Ads, helping you determine whether your ads calculator results are profitable.
ROAS = Revenue from Ads ÷ Ad Spend
Example: You spend $1,000 on Google Ads and generate $4,500 in revenue. ROAS = $4,500 ÷ $1,000 = 4.5x (or 450%).
Cost Per Click Calculator
Cost Per Click (CPC) measures how much you pay for each click on your ads. It's essential for budgeting and comparing efficiency across different ad platforms and campaigns. Lower CPC means your ads are more cost-effective at driving traffic.
Cost Per Click = Ad Spend ÷ Number of Clicks
Example: You spend $1,000 on Facebook Ads and receive 2,000 clicks. CPC = $1,000 ÷ 2,000 = $0.50 per click.
Cost per conversion takes this further by showing what you pay for each sale or lead. If 45 of those 2,000 clicks convert, your cost per conversion is $22.22 ($1,000 ÷ 45).
What is a Good ROAS?
A good ROAS depends on your profit margins and industry. Here's a general framework for evaluating your return on ad spend:
You're spending more on ads than you earn in revenue. Pause and reevaluate your campaigns.
You may be profitable depending on margins. Focus on optimization before scaling.
Good return on investment. Continue optimizing and consider scaling successful campaigns.
Excellent results. Scale aggressively while maintaining performance.
ROAS by Industry
Average ROAS benchmarks vary significantly by industry due to differences in profit margins, customer lifetime value, and competitive landscapes. Use these benchmarks to compare your Google Ads calculator and Facebook Ads cost calculator results:
| Industry | Average ROAS | Notes |
|---|---|---|
| E-commerce | 4:1 | Varies by product margins (20-60%) |
| B2B / SaaS | 5:1 | Higher LTV justifies higher CAC |
| Lead Generation | 3:1 | Depends on close rate and deal size |
| Travel & Hospitality | 6:1 | High-ticket, competitive market |
| Financial Services | 5:1 | High CPCs but high customer value |
| Education / Courses | 4:1 | High margins on digital products |
ROAS vs ROI: What's the Difference?
ROAS and ROI both measure return, but from different perspectives. Understanding when to use each metric helps you make better decisions about your marketing spend.
ROAS (Return on Ad Spend)
- • Revenue ÷ Ad Spend
- • Measures gross revenue return
- • Ignores other costs
- • Best for campaign optimization
ROI (Return on Investment)
- • (Profit - Investment) ÷ Investment
- • Measures net profit return
- • Includes all costs
- • Best for business decisions
Frequently Asked Questions
What is a good cost per click?
Good CPC varies dramatically by industry and platform. Google Ads CPCs average $1-2 for search, while Facebook Ads typically range $0.50-1.50. Legal and finance keywords can exceed $50/click. Compare your CPC to industry benchmarks and focus on cost per conversion for true efficiency.
How do I improve my ROAS?
Improve ROAS by: refining audience targeting, testing better ad creative, optimizing landing pages, increasing average order value, retargeting warm audiences, and pausing underperforming campaigns. Small improvements across the funnel compound into significant ROAS gains.
Should I include all marketing costs in ROAS?
ROAS typically only includes direct ad spend (money paid to ad platforms like Google Ads or Facebook Ads). Agency fees, creative production, and tools are usually excluded. For a complete picture, use our Marketing ROI Calculator which includes all marketing costs.
How do I calculate ROAS for lead generation?
For lead gen, calculate expected revenue: ROAS = (Leads × Close Rate × Average Deal Value) ÷ Ad Spend. Example: 100 leads × 10% close rate × $1,000 deal = $10,000 expected revenue. If ad spend was $2,500, expected ROAS = 4x.
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